Gold, Silver Rising on Jobs Data

by Andrew Burger | February 2, 2012 12:14 pm

Weekly unemployment claims came in better than expected ahead of tomorrow’s monthly employment report. Also bolstering market sentiment and risk appetite was news that China would play a greater role in supporting the EU’s efforts to contain its debt crisis.

Spot gold was almost 1% higher, bid at $1,759.30 per ounce with an ask price of $1,760.30. Spot gold traded as high as $1,760.50 and as low as $1,743. The London afternoon reference price fix came in at $1,751, $11 per ounce higher than Wednesday’s reference price, according to Kitco market data[1].

Spot silver was showing a gain of nearly 1.5% an ounce, bid at $34.21 with an ask price of $34.31. The morning high as of time of writing was $34.37 and the low was $33.54. Thursday’s reference price was set at $33.67 in the London a.m., 13 cents per ounce below Wednesday’s reference price.

Seasonally adjusted initial claims for unemployment insurance totaled 367,000[2] the week ended Jan. 28, a decrease of 12,000 from the previous week’s 379,000. The four-week moving average was 375,750, down 2,000 from the previous week’s four-week average.

The ranks of those receiving unemployment insurance continued to decline, as well. The advance reading of seasonally adjusted insured unemployment was 3,437,000 (2.7%) for the week ended Jan. 21, down 0.1% from the previous week. The four-week moving average was 3,527,500, a decrease of 1.2% from the previous week.

Elsewhere on jobs front, Challenger Gray reported a 28% (53,486) surge[3] in job cuts by the nation’s employers in January, the largest monthly layoff since 115,730 job cuts were announced last September. That’s a 28% jump from December, and 39% higher than Jan. 2011.

“It is not unusual to see a job-cut surge to start the year. Historically, January is the heaviest job-cut month,” the global outplacement firm noted.

Gold bullion prices were slipping lower after hitting an eight-week high[4] in London morning trading Thursday, according to BullionVault’s London Gold Market report. China and India’s gold imports continued to increase in 2011 and into 2012, according to market reports, despite record-high domestic gold production in China and the imposition of import duties in India.

In stock exchange trading, gold trusts were moving higher and the iShares Silver Trust (NYSE:SLV[5]) was showing strong gains for the second consecutive morning.

• The SPDR Gold Trust (NYSE:GLD[6]) was moving higher, up around 0.84%.
• The iShares Gold Trust (NYSE:IAU[7]) was showing gains of around 0.9%.
• The iShares Silver Trust was moving sharply higher, up more than 1.5%.

Gold and silver mining ETFs were up sharply.

• The Market Vectors Gold Miners ETF (NYSE:GDX[8]) was up 2.25%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ[9]) was showing gains of more than 2.3%.
• The Global X Silver Miners ETF (NYSE:SIL[10]) was up nearly 2%.

Gold mining shares were showing strong gains, except NovaGold Resources (AMEX:NG[11]), which announced it’s increasing a previously announced equity offering[12] by 8.6 million shares.

• Agnico-Eagle Mines (NYSE:AEM[13]) was showing gains of more than 1.7%.
• Barrick Gold (NYSE:ABX[14]) was up around 2.1%.
• Eldorado Gold (NYSE:EGO[15]) was about 2.6%.
• Goldcorp (NYSE:GG[16]) was down nearly 2.4%.
• Kinross Gold (NYSE:KGC[17]) was showing gains of nearly 2%.
• Newmont Mining (NYSE:NEM[18]) was up more than 2%.
• NovaGold Resources was sinking fast, down around 8.5%.
• Yamana Gold (NYSE:AUY[19]) was up some 2.2%.

Silver mining shares were up sharply.

• Coeur d’Alene Mines (NYSE:CDE[20]) was moving higher, up more than 2.4%.
• Hecla Mining (NYSE:HL[21]) was up about 1.6%.
• Pan American Silver (NASDAQ:PAAS[22]) was showing gains of more than 2%.
• Silver Wheaton (NYSE:SLW[23]) was showing gains of around 2.4%.
• Silver Standard Resources (NASDAQ:SSRI[24]) was showing gains of some 1.3%.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[25] contributed to this report.

Source URL: https://investorplace.com/2012/02/gold-silver-prices-jobs-data-precious-metals-mining-stocks-ng/

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